More than half (52%) of women in the UK do not believe they will have enough money to sustain their income in retirement, according to findings from Fidelity International’s annual Women and Money study.1
The research indicates that a significant number of women have adjusted their financial plans in response to economic pressures over the past 12 months. Specifically, more than one in ten (12%) women have reduced their pension contributions – with those who have done so cutting back by an average of £173 a month.
This reduction is largely driven by the current cost of living crisis, forcing many women to prioritise their more immediate financial needs. Over half (51%) of working women in the UK cite that a lack of available funds after covering essential expenses prevents them from saving more into their retirement fund, while 22% redirect funds towards other savings goals. Additionally, over one in ten (12%) expressed uncertainty about the most effective strategies for saving for retirement – highlighting the need for greater access to information and support with decision-making.
These decisions underscore a broader issue – the gender pensions gap – which disproportionately affects women’s long-term finances. The figures below reveal the typical pension pot value of men and women over recent years, as recorded by Fidelity’s Women and Money research.
Gender pension gap 2022-24
Total pension pot of non-retired respondents
| 2022 | 2023 | 2024 | ||||
| Men | Women | Men | Women | Men | Women | |
| Average | £78,000 | £45,690 | £79,180 | £43,560 | £76,700 | £42,600 |
| Aged 18-34 | £39,010 | £25,300 | £57,590 | £28,840 | £59,700 | £30,400 |
| Aged 35-54 | £84,300 | £44,690 | £85,790 | £52,160 | £80,300 | £46,800 |
| Aged 55+ | £137,730 | £81,600 | £118,850 | £68,310 | £114,000 | £66,800 |
Fidelity’s research indicates a persistent and significant gender pensions gap of 43.3% on average from 2022 to 2024. In 2022, the gender gap stood at 41.4%, indicating that men had significantly more pension savings than women. By 2023, this gap widened to 45%, suggesting an increasing disparity as men continued to outpace women, and in 2024 the gap slightly narrowed to 44.5%.
Men consistently have higher pension pots than women, with the gap particularly pronounced among younger adults aged 18-34, where men’s pensions savings are nearly double that of women.
Jackie Boylan, Head of Investor Servicing, Fidelity International, comments: “Fidelity International first launched itsWomen & Money campaign in 2018 to explore the barriers which can deter many women from investing and engaging with their long-term finances, and the steps required to narrow the gender financial gaps.
“The most recent data underscores the stark reality many women face as they navigate a complex financial landscape. The cost of living crisis has resulted in many women prioritising their most immediate financial needs, putting their longer-term financial future at risk.
“With so many women feeling concerned that they will not have enough money to sustain their retirement, we must take action to provide better financial education and support systems to help women navigate these challenges.”
The Power of Small Amounts
Despite the challenging picture presented by the research, there are ways for women to feel more in control of their long-term finances. Using Fidelity’s online ‘Power of Small Amounts’ calculator, savers can see how small changes can have a significant impact on their final retirement pot.1
The analysis shows that for a 45-year-old woman earning £28,7652 (the average salary for women in the UK) increasing contributions by as little as 1% could still make a substantial difference as they could enjoy an additional £17,000 in their retirement savings. Increasing contributions by 3% could see their savings grow by an extra £51,100 and those who can manage 5% more could secure an additional £85,200.
For younger individuals, the impact of small increases could be even more pronounced due to the longer time horizon. For a 25-year-old earning the same salary, increasing contributions by 1% could lead to an extra £74,000 in retirement. Increasing contributions by 3% could lead to £222,100 more and an additional 5% could accumulate an additional £370,200 by retirement age.
45-year-old woman earning £28,765 a year and plans to retire at 68
| Contribution Increase | Weekly Increase | Monthly Increase | Additional Retirement Savings |
| 1% | £6 | £24 | £17,000 |
| 3% | £17 | £72 | £51,100 |
| 5% | £28 | £120 | £85,200 |
25-year-old woman earning £28,765 a year and plans to retire at 68
| Contribution Increase | Weekly Increase | Monthly Increase | Additional Retirement Savings |
| 1% | £6 | £24 | £74,000 |
| 3% | £17 | £72 | £222,100 |
| 5% | £28 | £120 | £370,200 |
Jackie Boylan continues: “Our data shows that it is never too late or too early to make meaningful changes to pension contributions. Even starting later in life, the effect of small, regular increases can significantly enhance financial security in retirement. For younger savers, beginning early and making consistent contributions – no matter how small – can result in a substantial retirement fund.
“Encouraging women to seek professional financial advice and explore alternative savings strategies can make a significant difference in enhancing financial security in later years and it’s encouraging to see the new Chancellor, Rachel Reeves, pledge to address the gender gaps in finance. Closing this gap is a crucial step towards achieving economic equality and requires proactive measures to ensure that all individuals, regardless of gender, can retire with confidence and security.”
